New Delhi: The stage is set for the largest IPO in the country with the Union Cabinet approving the sale of Behemoth Behemoth Life Insurance Corporation of India (LIC).
The agency report said the Cabinet Committee of the Economic Affairs, which met last week, has cleared the IPO from LIC.
Although there was no official announcement made about the agreement, the source said this problem was part of the agenda for the cabinet meeting.
The report said that the panel led by Finance Minister Nirmala Sitharaman would decide the right amount of the dilution of interest.
Indication is that the government plans to uncover the IPO Mega at the end of the current fiscal year.
Lic.
The IPO is expected to be the largest in India with many analysts who expect shares of more than RS 1 Lakh Crore.
In addition to its thin size, corporations are seen as valuable considering new business share and high persistence among policy holders.
This is part of the government’s plan to collect Rs 1.75 lakh Crore from the sale of assets in government-managed companies in the current fiscal, which ended in March.
The government also plans to privatize two public sector banks and government-managed insurance companies as part of the overall privatization encouragement to improve resources.
To ensure that the IPO LIC occurs during the current fiscal, work is ongoing in several fronts.
The government has put all legislative changes and has also extended the Chairperson of Lickm R Kumar of nine months.
LIC has appointed a milliman as an actuary and EY as an advisor to calculate the company’s embedded value.
Embedded value is a unique assessment method for insurance companies that include current net value of future income from policies and is very important for stock pricing.
LIC also plans to audit its half-annual account for the period ended September 2021 for the first time.